Energy-Efficiency Consultants in China: Strong Government Support Is Driving High Growth and Profit

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Boosted by an array of energy-saving and emission reduction regulations implemented in 2006, the Energy-Efficiency Consulting industry in China has been growing rapidly. The majority of industry clients are in the high energy-consuming and high polluting manufacturing, real estate, and public transportation sectors. As technologies advance and new regulations promote the development of the industry, energy service companies will expand to cover service industries, says IBISWorld

IBISWorld Market Research

IBISWorld Market Research

The influx of foreign capital, which is greatly encouraged by the Chinese government, will be another driver of growth for energy service companies.

The Energy-Efficiency Consulting industry in China is expected to generate $31.4 billion in 2012, representing annualized growth of 54.2% over the past five years. Boosted by an array of energy-saving and emission reduction regulations implemented in 2006, the industry has been showing rapid growth, according to IBISWorld research. The investment in contract energy management (CEM) projects was $6.4 billion in 2011, up 50.5% from 2010.

Many new firms have entered the industry over the past five years, attracted by its high growth and profitability. In 2012, average profitability is estimated at 13.8% of revenue. The industry has become slightly more fragmented over the past five years with the influx of new entrants, IBISWorld reports. None of the top four enterprises – Shenwu Corp., China Energy Conservation and Environmental Protection Group, Schneider Electrics, and PowerU – have a market share over 10.0%. There are about 1,926 energy-efficiency consulting firms in China in 2012, representing annualized growth of 41.0% over the five years to 2012.

Energy service companies will continue to receive strong government support over the next five years. The influx of foreign capital, which is greatly encouraged by the Chinese government, will be another driver of growth. Currently, the majority of Energy-Efficiency Consultant industry clients are in the high energy-consuming and high polluting manufacturing, real estate, and public transportation sectors. As technologies advance and new regulations promote the development of the industry, firms will expand to cover service industries.

For more information, visit IBISWorld’s Energy-Efficiency Consulting industry in China report page.

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IBISWorld industry Report Key Topics

Energy-efficiency consultants help their clients, most of which are manufacturers, to reduce energy consumption and pollutant emission. A range of energy-saving services, from technical consulting to project construction and management, are included in this industry, but the manufacturing of energy-saving appliances is excluded.

Industry Performance
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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